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Morning Brief

Wake up to the Morning Quant Ride, your global markets update every morning!

Morning Quant Ride

Jun 07, 2018

US Stocks                                                                                                                                                              Start your free trial today

  • Global stocks continue their rebound ahead of the G7 summit in Quebec, Canada which begins tomorrow
  • French President Emmanuel Macron is warning he will not sign the summit’s traditional joint statement unless attendees make progress on tariffs negotiations (and other “contentious” issues)
  • US equity index futures are climbing this morning with the Dow Jones minis +0.30%, S&P500 minis +0.11% and Nasdaq 100 minis +0.01%
  • The VIX is below 12 this AM – lowest level since January
  • SPY June 15 and June 29 OTM Calls and QQQ September 18 OTM Calls are the most actively traded options contracts in the US pre-market
  • The yield on the US 10-year government bond is +1.1 basis points to 2.983%
  • The USD$ Index is down 0.23% with a strengthening EUR€ +0.46% and CHF +0.40% pressuring the Greenback

International Stocks

  • European stocks are off their highs with the Euro Stoxx 600 +0.17% as defensive sectors like telecom and consumer staples are giving up gains as German Bund yields rise
  • Major regional European indices are positive with the FTSE 100 +0.31%, CAC 40 +0.27% and DAX +0.13%
  • A strengthening EUR€ (+0.39% vs. USD$), coupled with disappointing May exports for the Eurozone is weighing on investor sentiment this AM
  • The VSTOXX, the European stocks equivalent of the VIX, is at 14.5353 which is in-line with its 1-year average
  • German 10-Year Bund yields are +3.5 basis points to 0.494%
  • Asia stocks rallied overnight with the Nikkei 225 +0.87%, Hang Seng +0.81%, Hang Seng China Enterprise +1.01%
  • H-Shares, Hong Kong listed Chinese stocks, were positive for the sixth-straight trading session

Cryptos

  • Software giant SAP has launched a cloud platform that will help corporations develop blockchain applications. The cloud-based solution seeks to provide enterprises with a framework to build business applications on systems like Hyperledger Fabric
  • The Bank of Thailand (BoT) is looking to adopt blockchain technology in its interbank clearance and settlement system. Central bank governor Veerathai Santiprabhob indicated that a wholesale central bank digital currency is being developed as part of Thailand’s efforts to use blockchain technology in the country’s industries
  • The Hypothekarkbank Lenzburg is the first bank in Switzerland to provide business accounts to blockchain companies. The country’s Falcon Private Bank has provided crypto asset management services since last year, but the firm has not opened company accounts for blockchain and crypto-related fintech companies
  • Quantamize AI Buy/Don't Own Crypto Signals on 30 cryptocurrencies will be updated tomorrow morning

*Data in Price Return

S&P 500 Sector Performance

*Data in Total Return as of Previous Day's EOD

Conviction Buy Laggards From Yesterday We Are Watching Today

Click name for Q-Factor rating and financial data.

Applied Materials, Inc. - 15.82% off its 52wkH on 03/12/2018, reports earnings on 08/16/2018

Lam Research Corporation - 15.02% off its 52wkH on 03/13/2018, reports earnings on 07/26/2018

Louisiana-Pacific Corporation - 3.91% off its 52wkH on 04/17/2018, reports earnings on 08/01/2018

Macy's, Inc. - 0.45% off its 52wkH on 06/05/2018, reports earnings on 08/10/2018

Micron Technology, Inc. - 8.10% off its 52wkH on 05/30/2018, reports earnings on 06/20/2018

Photronics, Inc. - 18.06% off its 52wkH on 06/09/2017, reports earnings on 08/15/2018

Stocks Trending in the News

Click name for Q-Factor rating and financial data.

Alphabet (GOOGL) may be facing an anti-trust fine of up to $11 billion from the EU’s competition committee, which accuses Alphabet of “abusing its dominance through the Android mobile operating system”.

AV Homes Inc (AVHI) is up 20.91% to $19.95, after it was announced that Taylor Morrison (TMHC) has agreed to acquire the company for $21.50 per share.

Conn Inc (CONN) shares have climbed 11.31% pre-market to $28.55 per share following the company’s sizeable earnings beat ($0.40 vs $0.27 expected).

Ferrellgas Partners (FGP) shares are down 1.59% before the open to $3.71 after the firm posted 3Q2018 EPS that was softer than projected ($0.18 vs $0.24 consensus).

Hamilton Lane-A (HLNE) ) announced 4Q2018 EPS that was well above the consensus ($0.58 vs $0.41 forecasted). Hamilton Lane-A is currently trading at $48.76 per share.

Hermes International (ENXTPA:RMS) is down 3.47% to €20.40 after the company was downgraded by Exane BNP Paribas to underperform from a neutral rating.

JM Smucker Co (SJM) reported 4Q2018 EPS that was significantly below expectations ($1.93 vs $2.18 projected). The company’s stock is down 4.98% pre-market, to a $101 handle.

The London Stock Exchange Group Plc (LSE.LSE) delayed today’s open of the London Stock Exchange by an hour, due to a technical glitch. This was the first major delay in the London Stock Exchange in 7 years.

Thompson Reuters (TRI) has announced a $1 billion share repurchase program.

Vail Resorts (MTN) is up 2.28% prior to today’s trading to $265 per share after releasing 3Q2018 EPS that was modestly above estimates ($6.17 vs $6.12 anticipated).

Stock Movers

Conviction Buy Winners and Losers

On Mobile/Tablet scroll to the right.

Winners  Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Comcast Corporation CMCS.A Consumer Discretionary Cable and Satellite 3.83% 3.23% -19.43%
Starbucks Corporation SBUX Consumer Discretionary Restaurants 2.68% 0.46% -0.45%
Huntsman Corporation HUN Materials Diversified Chemicals 2.61% 2.61% -0.90%
SEI Investments Co. SEIC Financials Asset Management and Custody Banks 2.56% 2.45% -6.74%
Zions Bancorporation ZION Financials Regional Banks 2.46% 2.68% 12.43%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
American Electric Power Company, Inc. AEP Utilities Electric Utilities -2.27% -4.30% -6.09%
Exelon Corporation EXC Utilities Electric Utilities -1.78% -3.12% -4.06%
Dollar Tree, Inc. DLTR Consumer Discretionary General Merchandise Stores -1.49% 0.35% -1.10%
UGI Corporation UGI Utilities Gas Utilities -1.38% -3.79% -3.84%
Tyson Foods, Inc. TSN Consumer Staples Packaged Foods and Meats -1.32% 0.16% 1.08%

Source: S&P Capital IQ

Conviction Short Winners and Losers

On Mobile/Tablet scroll to the right.

Winners Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Ambarella, Inc. AMBA Information Technology Semiconductors -12.94% -12.51% -11.99%
Blueprint Medicines Corporation BPMC Healthcare Biotechnology -4.94% -14.65% -14.27%
Longfin Corp. LFIN Financials Financial Exchanges and Data -5.11% -5.11% -13.74%
Applied Optoelectronics, Inc. AAOI Information Technology Communications Equipment -4.63% -0.36% -4.08%
GreenSky, Inc. GSKY Information Technology Data Processing and Outsourced Services -4.03% -8.06% -8.44%

 

Losers Ticker Sector Industry 1 Day Return 5 Day Return  YTD
Pivotal Software, Inc. PVTL Information Technology Application Software 10.20% 11.22% 0.00%
Nektar Therapeutics NKTR Healthcare Pharmaceuticals 7.18% -33.61% 0.44%
Pluralsight, Inc. PS Information Technology Application Software 6.57% 11.79% 0.00%
Pacira Pharmaceuticals, Inc. PCRX Healthcare Pharmaceuticals 6.38% 10.29% -17.85%
Devon Energy Corporation DVN Energy Oil and Gas Exploration and Production 5.57% 0.27% 0.27%

Source: S&P Capital IQ

Events Calendar

On Mobile/Tablet scroll to the right.

Company Name Ticker Event Date Event Type Q-Factor Score
The J. M. Smucker Company SJM 6/7/2018 Earnings Release Date US Large-Cap: A, US Consumer Staples: A
Vail Resorts, Inc. MTN 6/7/2018 Earnings Release Date US Large-Cap: A, US Consumer Discretionary: A
The Cooper Companies, Inc. COO 6/7/2018 Earnings Release Date US Large-Cap: C
Brilliance China Automotive Holdings Limited SEHK:1114 6/7/2018 Estimated Earnings Release Date China All-Cap: D
Enterprise Development Holdings Limited SEHK:1808 6/7/2018 Estimated Earnings Release Date China All-Cap: F
AVIC International Holding (HK) Limited SEHK:232 6/7/2018 Estimated Earnings Release Date China All-Cap: F
China Power International Development Limited SEHK:2380 6/7/2018 Estimated Earnings Release Date China All-Cap: C
ENN Energy Holdings Limited SEHK:2688 6/7/2018 Estimated Earnings Release Date China All-Cap: B
IGG Inc SEHK:799 6/7/2018 Estimated Earnings Release Date China All-Cap: B
Sinopec Kantons Holdings Limited SEHK:934 6/7/2018 Estimated Earnings Release Date China All-Cap: D
LVGEM (China) Real Estate Investment Company Limited SEHK:95 6/7/2018 Estimated Earnings Release Date China All-Cap: B
China Taiping Insurance Holdings Company Limited SEHK:966 6/7/2018 Estimated Earnings Release Date China All-Cap: C
The Bank of East Asia, Limited SEHK:23 6/7/2018 Estimated Earnings Release Date China All-Cap: C
Leidos Holdings, Inc. LDOS 6/7/2018 Estimated Earnings Release Date US Large-Cap: B, US Information Technology: A
CMBC Capital Holdings Limited SEHK:1141 6/7/2018 Estimated Earnings Release Date China All-Cap: D
China Merchants Port Holdings Company Limited SEHK:144 6/7/2018 Estimated Earnings Release Date China All-Cap: C
Sunac China Holdings Limited SEHK:1918 6/7/2018 Estimated Earnings Release Date China All-Cap: B
Hopson Development Holdings Limited SEHK:754 6/7/2018 Estimated Earnings Release Date China All-Cap: C
Wang On Properties Limited SEHK:1243 6/7/2018 Estimated Earnings Release Date China All-Cap: D
China Sunshine Paper Holdings Company Limited SEHK:2002 6/7/2018 Estimated Earnings Release Date China All-Cap: C
China Railway Signal & Communication Corporation Limited SEHK:3969 6/8/2018 Estimated Earnings Release Date China All-Cap: B
Grand Baoxin Auto Group Limited SEHK:1293 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Dynagreen Environmental Protection Group Co., Ltd. SEHK:1330 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Zhongyu Gas Holdings Limited SEHK:3633 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Greentown China Holdings Limited SEHK:3900 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Gemdale Properties and Investment Corporation Limited SEHK:535 6/8/2018 Estimated Earnings Release Date China All-Cap: C
Nine Dragons Paper (Holdings) Limited SEHK:2689 6/9/2018 Estimated Earnings Release Date China All-Cap: B
JNBY Design Limited SEHK:3306 6/9/2018 Estimated Earnings Release Date China All-Cap: A
NWS Holdings Limited SEHK:659 6/9/2018 Estimated Earnings Release Date China All-Cap: C